Time Capsule 7.4.1 Dropping out

Hi all,
My TC (7.4.1) keep dropping out, now several times a day.
By dropping out I mean any or all of: losing the internet connection (runing PPPoE), wireless network disappears, gigabit ethernet disappears, no ability to connect using the Airport utility EVEN via gigabit!!!
The problem is TEMPORARILY fixed by rebooting the TC, which is f'ing annoying to have to do several times a day, especially considering the price of the TC compared to other wireless routers (that don't dropout)!!!
Anyway seems like this is a fairly common problem for people going to 7.4.1.
Is there any fix besides going back to 7.3.2?
Not yet clear how to do that as there is no option in the Mac Airport Utility (will look it up), but I am fairly certain that the Airport Utility AUTOMAGICALLY upgraded me, without asking (unlike the PC version which I recall asks about checking for updates).
Does anyone know how to stop AUTOMAGIC updates?
**** YOU APPLE, WHY IS THERE NO SIMPLE OPTION IN THE UTILITY?????
thanks in advance

I've had the same problem for about a week now (no internet connection; TM backups failing; but still "connected to my network even though Airport Utility can't find TC). Only pulling the cord for TC waiting a few seconds and replugging it will "reset" the connection.
Weird thing was that my wife's MBP was not affected until I after the "solutions" tried on the first call. Since then, both our MBPs lose connections to TC and the Internet (but still show as being connected to our wireless network).
Spent a couple of hours with Apple Support on Saturday and Sunday. Then spent time today since my connection was lost Monday and Tuesday nights after the call center is closed.
The advice today was to manually set the channel (I was told 6) rather than automatic.
Has held up for 8 hours now. Will see what happens tomorrow.
Here's what else was tried to no avail:
First Call Saturday
1. reset the base station.
2. delete the SystemConfiguration folder under Preferences and let the system rebuild it
Second Call (Sunday am)
3. delete all network related keychain preferences on my wife's machine and mine
Third Call (Sunday pm)
4. Reboot into safe mode...still no connection
5. Reinstall operating system and upgrade to latest updates (our laptops already had the latest updates anyway)
Fourth call (Wed. am)
6. set TC to use channel 6 versus automatic (not sure how this will help given that I couldn't access Internet even on a wired connection)
Today they told me the next step would be to try the downgrade in firmware. If that fails, they will send a "ticket" to Engineering to determine if it's hardware related or software related.
Stay tune.

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